This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

LED Stock Rubicon Easily Beats, Guides Up

NEW YORK ( TheStreet) -- Heavily shorted LED market sapphire substrate provider Rubicon Technology (RBCN - Get Report) easily beat earnings expectations after Wednesday's closing bell, sending the shares higher in after-hours action.

Bensenville, Ill.-based Rubicon reported fourth-quarter earnings of $15.4 million, or 64 cents a share, well ahead of the average estimate of analysts polled by Thomson Reuters for a profit of 50 cents a share in the December period.

The company's fiscal first-quarter outlook was also strong as it forecast earnings of 62 to 65 cents a share for the three months ending in March vs. the current average analysts' view of 52 cents a share.

Revenue of $29.5 million for the fourth quarter was ahead of Wall Street's consensus view of $26.8 million, as was the company's projection for revenue of $34 million to $36 million in the first quarter vs. the average analysts' estimate of $31 million.

Rubicon shares were last quoted at $24.85, up 17.7%, on after-hours volume of around 330,000, according to

Over the past year, short interest in Rubicon Technology shares has doubled to more than 10 million shares of the 22.9 million outstanding shares of the LED company (even higher if the float is taken into account). Fears of a sapphire market glut have dogged the company. The most recent Nasdaq short interest report as of Jan. 31 shows that the 10 million share short position in Rubicon Technology remained steady headed into earnings season.

Shorts had predicted that pricing would fall off, and there was a bearish call on Rubicon recently from Canaccord Adams for a fourth-quarter pricing peak.

Beyond the printed earnings number and guidance, the Rubicon results showed better-than-expected success with its 6-inch sapphire wafer, a premium product that generates higher margins.

It's an important differentiating factor for a company that has attracted heavy short interest based on the theory that margins will fall. Rubicon margins hits 63% in the fourth quarter. The company guided margins lower for the first quarter, but at guidance of high 50s for the first quarter, the margins are still healthy.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
RBCN $0.97 0.00%
AAPL $117.81 0.00%
FB $105.45 0.00%
GOOG $750.26 0.00%
TSLA $231.61 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs